February 28, 2006—World Bank Group President Paul Wolfowitz was in Prague from February 27-28 to observe the country’s graduation from borrowing and to meet with top officials, students, young Roma leaders, and financial sector experts. Banking regulation and accounting standards is a pioneering area for the country, which overcame a banking crisis in the late 1990s in the wake of transition. For this reason, the government and the Bank also hosted an Institutional Foundations for Sound Finance forum to coincide with the graduation celebration and the visit of the Bank Group President. In an interview with Czech Television, Mr. Wolfowitz commented, “The Czech Republic has really pioneered some very important innovations that I think the whole world will benefit from.” In his graduation speech carried live by Czech TV and delivered to an audience including Finance Minister Bohuslav Sobotka as well as other senior banking and finance officials, Mr. Wolfowitz said: “The Czech Republic graduated from needing World Bank assistance because of the remarkable economic progress made since the Velvet Revolution, and especially in the last few years under the leadership of Vaclav Klaus.” "This country is small in size but it is large in accomplishment and large in spirit and large in the example that it is setting for the rest of this region and the rest of the world," he said. Looking ahead, Mr. Wolfowitz was asked in his interview how the country can deal with the knotty problems of pension reforms and health care, particularly given the country’s rapidly aging population. He answered, “I don’t want to proscribe for any particular country or say that one system that may work in one country will work in another. And certainly the United States hasn’t figured out health care or pensions and certainly it’s a challenge. But what’s clear is that as the population in this country and in other countries in Europe gets gradually older, and that’s happening, it’s totally predictable now that the burden will not be sustainable without some reform. There are different ways to do it.” Responding to a question about the country’s role as a donor, Mr. Wolfowitz said, “Well, I think the financial contribution will remain relatively small for some time, although I know there is an expectation of being at the per capita level of the rest of the EU, the most successful EU countries, by 2015. That would be a different era. Right now I think the most important thing the Czech Republic brings to the developing world is the benefit of its knowledge and its experience.” Czech Television then asked Mr. Wolfowitz how the flow of funding can be assured for low-income countries and how that money can be better managed. He answered: “Well, they really go hand in hand. It is taxpayers of developed countries who are not going to keep funding development assistance unless they see that it is having a positive effect. But I do think that there is a widespread consensus including in the US, which unfortunately is one of the stingier countries when it comes to development assistance, but I think everybody realizes it is an unhealthy world when 600 million people in Africa are slipping backwards and 900 million other people are living in extreme poverty. And I think people are prepared to do something to change that and to fix it. But is can only be done if the governments and the responsible people in the poor countries are prepared to step up and do their share which I think is increasingly the case. I am hopeful.” After being thanked by the interviewer, Mr. Wolfowitz said: “Well it’s a pleasure to be here and congratulations on the Czech success. It is something to be proud of, it is something to feel good about, and it is something I think the whole world can feel inspired by.” To read a new publication titled 'Evaluation of the Partnership between the Czech Republic and the World Bank, 1998-2005' |
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